One of the most important things people should do before buying or selling in any market is make sure they understand that market.
Do your research and examine the following:
- Demand
- Property Prices
- The Housing Supply
- The Rental Market
By making sure you completely understand the market in which you’re buying or selling, you can make informed choices about what your property-related decisions may be.
If the time has come to buy or sell in Phoenix, Arizona in particular, here are a few helpful things you might need to know.
The State of the Phoenix Market
Before diving deep into the intricacies of the Phoenix market when you’re buying or selling property, take a moment to view current trends and determine the general state of the market.
In early 2021, building permits were on the rise, and prices were on a tear. Financial experts were also pleased to report that financial health in the area was also increasing.
These can be promising signs when you’ve been thinking about building a new home or selling your old one to fund a project.
Median House Prices
In May 2020, median house prices in Phoenix were at $300,000, which is $30,000 higher than the national average. However, a 17% increase was seen in a 12-month period, with house prices rising to approximately $345,000 in 2021.
This is good news for those wishing to sell their homes quickly. You can make contact with a professional home buyer or realtor and take advantage of your property’s increased value.
Median Rent Prices
Homeowners don’t tend to keep an eye on median rent prices, but it can be worth your while if you’re a rental property owner. While Phoenix rent prices are below the national average, they are still increasing.
From 2020 to 2021, they rose 8.4%, and the current median is $1,587. In April 2020, the median was $1.474.
Housing Supply
Homeowners tired of managing their aging housing stock are likely looking at their options around selling. The housing supply in Phoenix may give you the confidence you need to sell your properties before maintenance becomes more than you can manage.
Even though the housing supply is down 1.23% from 2020 and is at its current lowest record, permits suggest that might change. There has been an increase in permits being filed for multi-unit and single-family homes in Phoenix.
Foreclosures
Foreclosure rates in the United States are much lower than they used to be, and Phoenix is no exception to that rule. Just 0.1% of homeowners are going through the foreclosure process, which is below the national foreclosure rate of around 0.32%.
While financial health may be contributing to this decline, property purchasers may also play a part. Instead of waiting until the bank claims a home, owners are able to enjoy fast cash sales through professional property buyers.
Significant buyer demand in the general public also means many homes are being snapped up before banks move to take over the property.
The property market can be complicated, but it can also be enlightening. The more you learn about what the market is doing, the easier it might be for you to make decisions surrounding your future property sales and purchases.